The split between the two multiples is the interesting tension, 114.9x forward earnings is actually below the five year average while 54.4x sales is way above it, so the whole debate is really about how fast margins expand from here. The $2.13 billion of US commercial bookings growing 153% is the number I would anchor on, since bookings at that pace can pull the sales multiple down faster than peolpe expect. Do you think Goldman's $230 target is mostly a multiple call, or are they underwriting bookings growth staying above 100% into next year?
The $230 figure suggests the high growth is already priced in. Palantir can continue to grow at that rate especially as more people understand the importance of sovereign AI and IP protection.
The split between the two multiples is the interesting tension, 114.9x forward earnings is actually below the five year average while 54.4x sales is way above it, so the whole debate is really about how fast margins expand from here. The $2.13 billion of US commercial bookings growing 153% is the number I would anchor on, since bookings at that pace can pull the sales multiple down faster than peolpe expect. Do you think Goldman's $230 target is mostly a multiple call, or are they underwriting bookings growth staying above 100% into next year?
The $230 figure suggests the high growth is already priced in. Palantir can continue to grow at that rate especially as more people understand the importance of sovereign AI and IP protection.